What To Expect From BoJ? … Views From 11 Major Banks

A preview of the Bank of Japan meeting courtesy of eFX
I’m typing this quick so it is, in fact, a preview … not long to go now!

the April 2016 meeting due to the downward revisions in corporate
inflation expectations. While our baseline call is for end-October, we
also see a risk of preemptive action as early as at this week’s BoJ
meeting (Wednesday).  increase the annual pace of monetary base expansion to JPY100-110trn from the current JPY80trn,  increase JGB purchase to JPY100trn from JPY80trn, extend the average duration of JGB purchases to 9-12y from 7-10y, increase
equity-linked ETF purchase to JPY6trn from JPY3trn, and 5) cut IOER by
5bp to 0.05%. While uncertainty remains as to what the BoJ actually
undertakes when easing further, a decisive action could pose an upside
risk to our USDJPY forecast of 123 at the end-2015. Inaction this week
may temporarily weigh on USDJPY, but market expectations for an action
on October 30 will likely remain live, limiting the downside for the

Powered by WPeMatico

1 2 3